Russia-China: Petroleum in Exchange for Credit
22.04.2009 13:55
Russia and China have signed an intergovernmental agreement on cooperation in a petroleum field. Deputy Prime Minister Igor Sechin and his Chinese colleague Van Tsishang put their signatures to this document.

The talks were held in Beijing, where the fourth round of the Russian-Chinese energetic dialogue took place. In China this agreement was called a real breakthrough in the bilateral energetic cooperation.

The document provides construction of the Eastern Siberia-Pacific Ocean pipeline bend (ESPO) towards China. It is stated in the agreement that its construction must be started at the end of this April at the latest and completed by the end of 2010.

Under this agreement the Development bank of China will grant the Russian oil companies $25 billion credit against future oil deliveries for the pipeline construction. During 20 years Russia will have to deliver 300 million tons of oil to PRC.

As Igor Sechin noted, the entered engagements have a unique nature. They provide for long-term oil deliveries to China subject to ensuring financial support.